UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'Let’s try some more!'
Apr 15, 2025
The podcast dives into the economic impact of new trade taxes proposed by President Trump, focusing on potential levies on pharmaceuticals and computer chips. It highlights surprising consumer resilience in retail sales within the UK, even as the auto industry's production struggles continue. Additionally, the discussion shifts to trade trends, particularly in the UK, and anticipates crucial economic data from Germany and the U.S., contextualized within a cautious global economic landscape.
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Trump's New Trade Tax Plans
- US President Trump is pleased with the effects of trade taxes and plans taxes on pharmaceuticals and computer chips. - Taxing chips could affect smartphones indirectly despite retreating from smartphone taxes.
Smartphones and Auto Tax Impact
- Smartphone companies might benefit from foreign visitors buying burner phones in the US due to new chip taxes. - Trump's retreat from taxing autos might encourage US production but comes with challenges.
Challenges in Auto Production Shift
- Moving car production to the US is complex and costly due to factory building and uncertain policy environment. - CEOs may delay investments despite tax retreats, echoing EU's approach of vague investment promises.